a16z Podcast | Advertising vs. Micropayments in the Age of Ad Blockers

TL;DR

Ad blocking is a significant topic of discussion, especially with the release of iOS 9 which allows users to download ad blockers. The impact of ad blocking depends on factors such as the browser used and the percentage of content viewed through apps. Other questions arise, such as the number of people who will install ad blockers and whether advertising is sustainable in the long run.

Transcript

hi this is Chris Dixon this is a 16z podcast i'm here with benedict Evans let's talk about so blog people talk about ad blocking lately iOS 9 allows you to down to download ad blockers or content blockers which remain lian blockers I guess the first question I have is is this there's a lot of talk about it is it actually a big deal it's it's an int... Read More

Key Insights

• 😥 The impact of ad blocking depends on factors such as the browser used and the percentage of content viewed through apps.
• 🫠 The number of people who will install ad blockers is uncertain, but there is expected to be a surge of users who are concerned about tracking and advertising.
• 🫠 Ad blocking can improve user experience by reducing the amount of code and JavaScript running on web pages.
• 🥺 There are broader questions about the sustainability of advertising as a business model, which has led to discussions about alternative monetization methods such as micropayments or native advertising.
• 🎉 Facebook and other platforms with native advertising may become the new ad networks, as they have the distribution and revenue models necessary to support third-party content creators.
• 🫠 The rise of ad blockers may prompt publishers to rethink their advertising models and explore new revenue streams such as micropayments or subscriptions.
• 🫠 Paywalls have improved the user experience for some publishers by removing intrusive ads, but they have limitations in terms of reach and audience engagement.

Questions & Answers

Q: How does ad blocking affect content viewed within apps like Facebook?

Ad blocking within apps is not affected by ad blockers, as they primarily target web browsers. Therefore, if a user is viewing content within their newsfeed, it is not affected by ad blockers. However, if a user taps on a link within Facebook that leads to a web page, the content may be blocked by ad blockers.

Q: What percentage of the population is concerned about tracking and advertising?

It is difficult to determine the exact percentage of people who are concerned about tracking and advertising. While some individuals may be vocal about their concerns, it is unclear how representative they are of the overall population. More research is needed to understand the attitudes and behaviors of different demographics.

Q: Does ad blocking benefit users by improving their experience?

Ad blocking can improve user experience by reducing the amount of code and JavaScript running on web pages. This can lead to faster loading times and a smoother browsing experience. Users who install ad blockers may see a noticeable improvement in their overall online experience.

Q: Is advertising a sustainable business model for publishers?

The sustainability of advertising as a business model is a subject of debate. Some argue that the rise of ad blockers and the increasing skepticism towards advertising suggest that it may not be a viable long-term solution. This has led to discussions about alternative monetization methods such as micropayments or native advertising.

Summary & Key Takeaways

• Ad blocking may not have a significant impact on advertising revenue as the majority of time spent online is within apps like Facebook, which are not affected by ad blockers.

• The number of people who will install ad blockers is uncertain, but it is expected that those who are concerned about tracking and advertising will do so.

• Ad blocking can improve user experience by reducing the amount of code and JavaScript on web pages, leading to faster loading times.

• There are broader questions about the sustainability of advertising as a business model and the potential for alternative monetization methods such as micropayments.